SCAMMERS
TAKE ADVANTAGE OF HEALTH REFORM CONFUSIONState Insurance
Regulators Warn Consumers to Be On Alert

Since the
Affordable Care Act (ACA) was signed into law in March 2010, unscrupulous
scammers have been creating ways to take advantage of consumers’ uncertainty
surrounding the law. Posing as insurance agents or representatives of the
federal government, these scam artists try to sell fraudulent policies or
obtain sensitive information like Social Security and bank account numbers.
The National Association of Insurance Commissioners (NAIC) and state
insurance regulators are warning consumers about common red flags and
providing tips on how to avoid being the victim of a scam.

Health
Insurance Marketplaces
One of the largest components of the ACA is the creation of new health
insurance marketplaces, or exchanges. These online portals ask consumers to
enter information about themselves and select the level of coverage they
desire to receive a list of plans they can purchase. Each state had the
option of running its own exchange, partnering with the federal government or
having the federal government run its exchange entirely.

Open
enrollment in the new marketplaces begins October 1. However, bogus websites
that purport to be part of the exchanges have been appearing online for more
than a year. Do not enter any personal or financial information into a
website that says you can purchase a policy before the open enrollment
period.

Regardless
of whether your state has chosen to run its own exchange or work with the
federal government, you can find a link to your state’s official exchange at healthcare.gov.

New
“Obamacare” Insurance or Medicare Cards
Another common ploy involves unsolicited calls from scammers who claim to
have your new “Obamacare” insurance card – they just need to get some
information before they can send it to you. The caller then asks for credit
card numbers, bank account information or your Social Security number. A
variation of this trick specifically targets seniors on Medicare; the caller
claims that in order for them to get their new Medicare card and continue
receiving their benefits, they must verify their bank account and routing
numbers. Some callers ask for their Medicare numbers, which are identical to
Social Security numbers.

You are
not required to obtain a new insurance or Medicare card under the ACA. Also,
anyone who is a legitimate representative of the federal government will
already have your personal and financial information and should not ask you
to provide it.

Don't
Be Misled
Here are some other important “red flags” to watch out for:

The salesperson says the premium offer is only good
for a limited time.

Enrollment in the exchanges will be open from Oct. 1
to March 31, and rates for plans in the exchanges will have been
approved for the entire enrollment period. Be skeptical of someone who
is trying to pressure you into buying a policy because the rate is only
good for a short time. Remember: if the offer sounds too good to be
true, it probably is.

The salesperson says you could go to jail for not
having health insurance.

Starting in 2014, all Americans will be required to
have health insurance. You will not face jail time if you do not
purchase health insurance. However, those who remain uninsured and do
not qualify for any exemptions will face a penalty of $95 (for each
adult) or 1% of family income, whichever is greater. In 2015, the
penalty will increase to $325 per adult or 2% of family income, and in
2016 and beyond, the penalty will be $695 per adult or 2.5% of family
income. For more information on the individual shared responsibility
provision of the ACA, click here.

You receive an unsolicited phone call or email from
someone trying to sell insurance.

The federal government and state insurance
departments will not be contacting individual consumers to sell them
insurance. Do not give any sensitive information to anyone who claims
to be with the federal government, your state insurance department or a
navigator for your state’s exchange.

Protect
Yourself
The best way to protect yourself from insurance fraud is to research the
agent and company you’re considering. Always STOP before writing a check, signing a
contract or giving out personal information. CALL your state insurance department
and CONFIRM
that the agent and company are licensed to write insurance in your state.

The
National Association of Insurance Commissioners (NAIC) is the U.S.
standard-setting and regulatory support organization created and governed by
the chief insurance regulators from the 50 states, the District of Columbia
and five U.S. territories. Through the NAIC, state insurance regulators
establish standards and best practices, conduct peer review, and coordinate
their regulatory oversight. NAIC staff supports these efforts and represents
the collective views of state regulators domestically and internationally.
NAIC members, together with the central resources of the NAIC, form the
national system of state-based insurance regulation in the U.S. For consumer information, visit insureUonline.org.